GST on an under-construction flat vs a ready-to-move flat in Andhra Pradesh (Vizag, Vijayawada)
Short answer: a flat in Vizag, Vijayawada or anywhere in Andhra Pradesh bought after its completion certificate is issued attracts no GST on the sale (PIB). Before that, GST applies: an effective 5% without input tax credit for most flats and 1% for an "affordable residential apartment" (TRU FAQ on real estate, Q1). For AP cities the "affordable" carpet-area limit is the larger, non-metro one.
Under construction vs ready to move: the GST difference
| Your flat | GST on what you pay the builder |
|---|---|
| Ready-to-move, sold after the completion certificate is issued | No GST. PIB: "there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority." |
| "Ready-to-move" but the completion certificate is not yet issued | GST applies. PIB: GST "is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale." |
| Under construction, not an "affordable" flat | Effective 5% without input tax credit on total consideration (FAQ Q1, rate from 01-04-2019) |
| Under construction, "affordable residential apartment" | Effective 1% without input tax credit on total consideration (FAQ Q1). The FAQ lists only Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata and Mumbai as metropolitan cities, so for a flat in Vizag, Vijayawada, Guntur or Tirupati the limit is carpet area up to 90 square metres and a gross amount charged of not more than ₹45 lakh (FAQ Q2). |
Is my Vizag or Vijayawada flat "affordable" for GST?
FAQ Q2: carpet area up to 90 sq m (about 969 sq ft) in cities or towns other than metropolitan cities, and a gross amount charged of not more than ₹45 lakh. The FAQ adds that "cities or towns" include "all areas other than metropolitan city as defined, such as villages". So a 2BHK of 85 sq m carpet in Vijayawada priced at ₹42 lakh would meet both limits on the FAQ's wording, while the same flat at ₹48 lakh would not. (Example numbers only, to show how the two tests work.)
Five checks before you sign or pay the next instalment
- Ask whether the completion certificate (or occupancy certificate) has been issued, and get a copy. That date decides whether GST applies at all. See our occupancy certificate check.
- Ask the builder, in writing, which GST rate is in the price and whether the quoted price is inclusive or exclusive of GST.
- Check the carpet area and total price against the "affordable" limits above. Carpet area is the RERA figure, not super built-up: see our carpet area guide and the carpet area loading calculator.
- Ask for a tax invoice for each instalment showing the builder's GSTIN and the GST charged. You can check a GSTIN on the official GST portal (search taxpayer); the exact steps are to verify on the portal.
- Keep GST separate from stamp duty. Stamp duty and registration fee are state charges paid when the deed is registered; see our stamp duty guide.
The buyer can't choose the rate. FAQ Q20: "The buyer cannot exercise option to pay tax at the new or old rates. It is the builder, who has to exercise the option". In projects that were already ongoing on 31 March 2019, a builder could keep the old effective rates of 8% / 12% with input tax credit, and the FAQ says it is "expected to pass the benefit of the credit" to buyers (Q1, Q17).
To verify: this FAQ is dated 7 May 2019. GST rates can be changed by later notifications, so check the current rate notification on the CBIC GST site or with a chartered accountant before relying on any number here. We have not stated anything about input tax credit for buyers, GST on parking, club or maintenance charges, or GST on resale between two individuals, because the pages we read don't cover those lines for a flat buyer.
Related guides
- Verify the RERA project registration
- TDS on property purchase
- Undivided share of land (UDS) check
- Flat possession handover checklist
- RERA complaint against a builder
Buying in Telangana? See the Telangana guide.
Not tax or legal advice. This page summarises a 2019 TRU FAQ and a PIB release read on 23 Oct 2026. GST notifications change and the gazette notifications prevail. Confirm the rate on your flat with a chartered accountant before you sign or pay.
A free sample from our Andhra Pradesh property do-it-yourself pack: which portal to open, in what order, what to ask the builder for, and what to keep on file.
Get it free (instant download)FAQ
Is there GST on a ready-to-move flat in Vizag or Vijayawada?
No GST if the sale takes place after the completion certificate is issued, per PIB. Before that, GST applies.
What is the GST on an under-construction flat in Andhra Pradesh?
An effective 5% without input tax credit for most flats and 1% for affordable residential apartments, per the TRU FAQ on real estate dated 7 May 2019. Check the current rate notification too.
What is the affordable housing GST limit in Vijayawada?
Carpet area up to 90 square metres and a gross amount charged of not more than Rs 45 lakh, because Vijayawada is not in the FAQ's list of metropolitan cities.
Is GST the same as stamp duty?
No. GST is collected by the builder on the construction service before completion; stamp duty and registration fee are state charges paid when the sale deed is registered.
Official sources
- TRU: FAQs on real estate, F. No. 354/32/2019-TRU, 7 May 2019 (GST Council PDF)
- PIB: Effective tax rate on complex, building, flat etc. (PRID 1555274)
- CBIC GST portal (current notifications)
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.